Getting personal loans if you have a bad Credit score can be super challenging. Still, obtaining a loan is important for so many people. Most people in the United States can’t afford various necessities like mortgages, education and even wedding expenses.
Who’s going to give you a loan if you’re unable to prove your creditworthiness through the FICO score? Well, let’s get into details and see if there are any monthly installment loans through direct lenders that don’t check credit scores.
A personal loan is a short-term loan granted to people for emergencies as a means of fast cash. This may be borrowed from a bank, credit union or an online lender, and the money is then given to the borrower on an interest rate.
The loan is to be returned in a period that usually ranges from two to seven years, and an interest rate that adds on with the principal amount each month. Most personal loans are unsecured loans, which means they do not require any sort of collateral. And because of this the interest rates are relatively higher because there is a high chance of the borrower defaulting on the loan.
A guaranteed loan is where a third party assumes the risk of the borrower defaulting on the loan. Guaranteed loans are generally payday loans; which are short-term loans handed out to people for their emergencies. These generally have a higher interest rate because of the risk of bad credit borrowers defaulting on the loan.
These are specifically reserved for poor credit borrowers who would be rejected a loan otherwise. To avoid that situation, a payday loan is granted on a high interest rate. This situation is a guaranteed loan approval no matter what.
Payday loans are also considered as bad credit loans because these are specifically for people with poor credit. Not only do they get immediate cash for their financial emergencies, but also gives high risk borrowers a chance to fix their credit score. If they pay back their loan promptly, they could actually improve their poor credit.
Looking for a loan despite bad credit? Our guaranteed installment loans offer flexible options that can be repaid over several months or years.
Explore an installment loan tailored to your needs and work towards rebuilding your credit.
These are two lenders that do not check credit scores and give out loans on a monthly installments:
Here are some of the rates for guaranteed loan approval no credit check direct lender.
| LENDER | BEST FOR: | MIN. CREDIT SCORE | EST. APR | MIN. LOAN AMOUNT | MAX. LOAN AMOUNT |
| Bad Credit Loans | Poor credit scores | Not specified | 5.99%–35.99% | Not specified | $10,000 |
| Upstart | Limited credit history | 600 | 8.69%–35.99% | $1,000 | $50,000 |
| OneMain Financial | Secured loans | Not specified | 18.00%–35.99% | $1,500 | $20,000 |
| TD Bank Personal Secured Loan | Credit building | Not specified | Starting at 5.67% | $5,000 | $50,000 |
| Avant | Unsecured loans | 580* | 9.95%–35.99% | $2,000 | $35,000 |
| LendingPoint | Flexible repayment options | 585 | 9.99%–35.99% | $2,000 | $25,000 |
| Upgrade | Fast funding | 620 | 7.99%–35.97% (with autopay) | $1,000 | $35,000 |
| LendingClub | Online experience | 600 | 10.68%–35.89% | $1,000 | $40,000 |
Note: Sample rates have been extracted online, courtesy of BankRate.
The estimated APR according to FICO score range is as follows:
| CATEGORY | CREDIT SCORE | PERCENTAGE OF PEOPLE IN THIS CATEGORY | ESTIMATED APR |
| Excellent | 800–850 | 21% | 10.3%–12.5% |
| Very good | 740–799 | 25% | 10.3%–12.5% |
| Good | 670–739 | 21% | 13.5%–15.5% |
| Fair | 580–669 | 17% | 17.8%–19.9% |
| Very poor | 300–579 | 16% | 28.5%–32% |
If it is not an emergency to get a personal loan, it is advised to improve your credit rating in the meantime. Your credit rating can be improved through prompt payments of your debts like your credit card. If possible, reduce the credit card limit and do NOT apply for a new one. Working on these areas and even putting in little effort can increase your credit rating within 3-6 months.
If it is an emergency where you absolutely have to get a $2,500 installment loans for bad credit and no cosigner, you can have a meeting or an interview with the lender. The best you can do is explain your situation and prove to them that you’re not a bad risk after all.
Online lenders such as Prosper, Upstart and Lending Club, have options for people with a poor credit history. While you may still need at least one or two accounts in your credit report, these lenders look at features of your financial profile beyond just your credit reports and scores when considering you for a loan.
Another option is going to credit unions that may be affiliated with your employer or your community. Such organizations look beyond the credit rating and are often more interested in your income or DTI. Or if it’s a small community bank, they might give you a loan based on your promising character!
You might try your luck with secured loans, because often when people have bad credit or no cosigner, they get secured loans. You can offer something valuable of yours like a portion of your home or your car as collateral. This gives lenders a peace of mind that at least they wouldn’t be at a complete loss if the borrower defaults on the loan.
Asking from friends and family for a loan is an amazing option, getting a loan from your family will have you dodge hidden bank charges and lender fees. You can simply tie up with them the agreement and decide on an interest rate. If both parties agree, you can sign the contract with them and make sure you pay back their loan in due time. If not, it could really affect your image in front of them making it hard for you to ask for favours next time.
Often what happens is that one lender refuses to lend the loan, but there are other people who would give you a personal loan and that too on a competitive interest rate. Shop around for better rates with more lenders and see if you get a better deal. The best way to handle this situation subtly is by asking around your friends and family- see if they know someone who got a personal loan with no credit and no cosigner. That way you can get a lot of different options and ideas on how to go about your particular situation.
No loan is ever truly guaranteed for everyone. Even loans labeled as “guaranteed” have lending criteria to meet. However, payday loans and other quick-approval loans are designed for those with poor credit.
Financial emergencies can happen to anyone, and it’s crucial for those with low credit scores to have borrowing options. Traditional banks and credit unions often reject such applicants, but payday loans and other guaranteed-approval loans offer a lifeline. Although interest rates are higher, these loans serve borrowers who may be more likely to default.
Explore and compare lenders to find the best rates and terms. Choose one that not only approves your loan but also offers fair terms tailored to your needs.
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